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Ezel / Tax Rulings / NE
NE 01-02-12 Sales and Use Tax 2002-09-30

Are refractory materials, lime, synthetic slag, mill rolls, and guides used to make steel or cement still exempt from Nebraska sales tax?

Short answer: No -- they became taxable. Under Revenue Ruling 01-02-12, Laws 2002, LB 1085 repealed the sales and use tax exemption for the sale of refractory materials, lime, synthetic slag, mill rolls, and guides for use in manufacturing steel or cement. All purchases of such items made on and after October 1, 2002 are subject to tax. This supersedes Sales and Use Tax Regulation 1-012.02D(28).

Apply this to your situation

This page answers the general question as of 2002. Ezel answers yours, under current Nebraska tax law, with citations.

Currency note: this ruling is from 2002
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Revenue Ruling of the Nebraska Department of Revenue, a guidance document stating the Department's interpretation of how Nebraska tax law applies. Each Nebraska guidance document carries the notice that it 'is advisory in nature but is binding on the Nebraska Department of Revenue until amended.' Unlike a private letter ruling, a Revenue Ruling is a general statement of Department policy rather than advice to a single taxpayer, but it can be amended, superseded, or made obsolete by a later ruling or a change in statute or regulation, many rulings in this series have been rescinded or superseded, so confirm it is still in effect before relying on it. Nebraska's local option sales and use taxes are administered by the Department, not self-collected by home-rule cities. This summary is informational only and is not legal or tax advice. Consult a licensed Nebraska tax professional about your situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

Nebraska used to exempt certain consumable inputs to steel and cement manufacturing. Nebraska's 2002 tax bill LB 1085 repealed that exemption, so effective October 1, 2002, purchases of these items are subject to sales and use tax:

  • refractory materials,
  • lime,
  • synthetic slag,
  • mill rolls, and
  • guides

when used in the manufacture of steel or cement. All purchases of such items on and after October 1, 2002 are taxable.

This supersedes Sales and Use Tax Regulation 1-012.02D(28).

What this means for you

A steel or cement manufacturer

The specific exemption you may have relied on for refractory materials, lime, synthetic slag, mill rolls, and guides is gone as of October 1, 2002 — budget for sales/use tax on these consumables. (Nebraska's separate manufacturing-machinery exemptions are governed by their own rules; this ruling only removes the exemption for these enumerated items.)

A supplier to these manufacturers

Charge tax on these items for purchases made on or after October 1, 2002; don't honor the repealed exemption.

Common questions

Q: What items lost their exemption?
A: Refractory materials, lime, synthetic slag, mill rolls, and guides used in manufacturing steel or cement.

Q: When did they become taxable?
A: October 1, 2002, under Laws 2002, LB 1085.

Citations and references

  • Laws 2002, LB 1085 — repealed the exemption for refractory materials, lime, synthetic slag, mill rolls, and guides used to make steel or cement, effective October 1, 2002.
  • Reg 1-012.02D(28) — superseded by LB 1085.

Source

Original ruling text

REVENUE RULING 1-02-12
September 30, 2002
Sales and Use Tax - Exemptions. EFFECTIVE OCTOBER 1, 2002, PURCHASES OF
REFRACTORY MATERIALS, LIME, SYNTHETIC SLAG, MILL ROLLS, AND GUIDES
USED IN THE MANUFACTURE OF STEEL OR CEMENT ARE SUBJECT TO TAX.
Laws 2002, LB 1085, repealed the exemption for the sale of refractory materials, lime, synthetic
slag, mill rolls and guides for use in manufacturing steel or cement. All purchases of such items
made on and after October 1, 2002, are subject to tax.
Sales and Use Tax Regulation 1-012.02D(28) is superseded by the provisions of Laws 2002,
LB 1085.
APPROVED:

Mary Jane Egr
State Tax Commissioner
September 30, 2002

Nebraska Department of Revenue, P.O. Box 94818, Lincoln, Nebraska 68509-4818

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